Joann to close? Ohio-based fabric store again files for bankruptcy
HUDSON, Ohio (WCMH) -- Joann, the Ohio-based fabric and craft store, has again filed for bankruptcy and plans to sell all assets to the same company that recently acquired Big Lots.
One of the largest arts and crafts retailers, Joann commenced Chapter 11 proceedings on Jan. 15 to facilitate a sale to Gordon Brothers Retail Partners. Big Lots, another Ohio-based chain, also recently closed a sale agreement with Gordon Brothers, which is now selling Big Lots' assets to other retailers that intend to continue operating several hundred of the brand's stores.
Joann, based in Hudson, said the transaction is subject to higher and better offers, with the company actively soliciting alternative bids. In the meantime, the company's locations and Joann.com are operating normally, and team members are continuing to receive pay and benefits, Joann said.
"After carefully reviewing all available strategic paths, we have determined that initiating a court supervised sale process is the best course of action to maximize the value of the business," said Michael Prendergast, interim CEO of Joann. "We hope that this process enables us to find a path that would allow Joann to continue operating as a going concern."
Founded in 1943, Joann currently operates about 800 stores and 40 distribution centers. The company employs 19,000 workers, 3,400 of whom are full-time and 15,600 part-timers. The company is home to several central Ohio locations, including 3880 Morse Road in Easton Square and 1265 Polaris Parkway near Polaris Fashion Place.
Joann previously filed for bankruptcy in March 2024, when it originally cited issues with increasing interest rates and decreasing sales after a spike in sales during the COVID-19 pandemic in 2021 and 2022. Despite attempts in June 2023 to reduce costs, the company held over $1.06 billion in funded debt at the time of filing.
The company exited its Chapter 11 bankruptcy and became a private company nearly a month later. Joann started to implement its next business plan, but hit a major roadblock when it encountered inventory challenges and sluggish retail sales. Those factors resulted in major debt, which now sits at about $615 million for the company.